There are a few different ways that small business owners will feel a federal rate increase. This rate increase will lead to higher business loans due to the increase in the interest rate which will increase the scrutiny when it comes to lending. Credit card debt will also become more expensive so the best thing you can do is pay off any outstanding debt as quickly as you can. Finally, business growth may stall due to lower demand and lower consumer spending in general.
- There is expected to be more expensive business loans due to higher interest rates as well as more scrutiny with lending.
- Credit card debt is expected to become more expensive so try to pay off any outstanding debt as fast as you can.
- Business growth might stall because consumer spending will probably lower due to how expensive it will be to borrow money.
“Credit card interest rates will be among the first to rise if and when the Fed raises rates, Tomic says.”